Bitwise's Matt Hougan discussed whether it's too late to invest in Bitcoin, stressing that most investors still have no exposure and that institutional adoption of the cryptocurrency could accelerate in 2025.
In the world of cryptocurrencies, one question constantly resonates among investors: Is it too late to buy Bitcoin?
Matt Hougan, Bitwise's chief investment officer, addressed this question with a perspective that combines technical analysis, market experience, and a long-term vision. His clear and forceful answer is: a resounding "No"But why does he hold this position? Let's see.
Entering the Bitcoin Market: Is It Really Too Late?
Matt Hougan points out that despite the exponential growth in Bitcoin adoption in recent years, most investors still have zero exposure to this cryptocurrency. This fact is crucial to understanding why, in his opinion, It's still early to invest in Bitcoin.
According to Hougan, the cryptocurrency market is still nascent compared to other traditional assets such as stocks or bonds.
“Again, everyone wants to know if it’s too late. My answer this year is the same as last year: “No.” Most investors still have zero exposure to Bitcoin. Until that changes, by definition, you’re early.”, Hougan said.
The expert argues Until Bitcoin adoption becomes widespread among institutional and retail investors, the potential for growth remains significant. In other words, as long as most people have not yet incorporated Bitcoin into their investment portfolios, the market is still in an early stage of development. This outlook contrasts with the “missed the boat” sentiment that often arises when looking at the cryptocurrency’s all-time highs to date of over $108.000 per unit.
Source: CoinMarketCap
2024: A key year for Bitcoin and the beginning of a new era
The year 2024 was a tipping point for Bitcoin. Events such as the halving, the launch of Bitcoin ETFs and the entry of financial giants such as BlackRock into the crypto space marked a before and after in the institutional adoption of cryptocurrency. These factors not only boosted the bitcoin price, but also legitimized its role as an investment asset and store of value.
However, Hougan noted that while 2024 was an exceptional year, 2025 could be even more relevant, considering the pro-crypto administration being established in Washington with Donald Trump at the helm and the greater acceptance of Bitcoin and cryptocurrencies by corporations and governments. Hougan stressed that all these factors could cause the institutional adoption of Bitcoin to accelerate this new year. In addition, the above, added to the reduction in the BTC supply due to the halving, could generate a favorable scenario for new historical highs for the leading cryptocurrency.
Bitcoin has proven to be a profitable long-term investment
Hougan analyzed Bitcoin’s historical price movements and its performance in comparison to the S&P 500, highlighting that despite its volatility, the cryptocurrency has vastly outperformed the traditional stock market index over the long term. The expert used concrete examples to illustrate his point, noting that in the 2017 cycle, the price of BTC peaked at $19.217 before falling back to below $3.000 in 2018. However, those who held on to their investment to date would have seen a return of over 400%, which would be more than double the return of the S&P 500, which offered around 150% over the same period.
Looking at the 202 cycle, Bitcoin hit an all-time high of $68.780, Hougan said, followed by a drop to $17.000 per BTC. However, despite this drastic correction, those who held their positions would have seen a 42% return, currently, which would again outperform the S&P 500 over the same period.
Hougan used this data to emphasize that while Bitcoin is a volatile asset and is likely to experience further significant pullbacks, timing is key.
Timing in the market is key, says Hougan
Matt Hougan concludes that trying to time the market is a mistake. He indicated that even those who bought at previous peaks, such as in 2017 or 2021, would have made significant returns if they had held their positions in the cryptocurrency for the long term. Therefore, he argues that despite the volatility, Bitcoin has proven to be a profitable investment, which has been consistently outperforming the S&P 500.
In short, Hougan believes that it is not too late to buy Bitcoin and that if you believe in the potential of this cryptocurrency, the most important thing is to maintain the investment for the long term.
IMPORTANT: The content of this article is for informational purposes only and, in no case, what is written here should be taken as investment advice or recommendations. Bit2Me News reminds you that before making any investment you should educate yourself and know where you invest your money, as well as the pros and cons of the system. We separate ourselves from the actions and consequences that ignorance may entail. If you decide to invest in this or another asset class, you are solely responsible for the consequences that your decisions and actions may have.
